Immofinanz cap hike before Immoeast merger -report
VIENNA, Oct 22 (Reuters) - Austrian developer Immofinanz (IMFI.VI) will raise capital in a rights issue before merging with subsidiary Immoeast (IMEA.VI), planned for the first half of 2010, its chief executive was quoted as saying on Thursday.
Eduard Zehetner, who heads both Immofinanz and Immoeast, told Austrian daily WirtschaftsBlatt in an interview the rights issue would come ahead of the planned merger but declined to say whether it would still happen this year.
"Before (the merger), yes, but I'm not going to tell you more precisely," Zehetner said. "The merger is planned for the first half of 2010."
Immofinanz, at its annual general meeting earlier this month, got shareholder approval to sell 229.5 million new shares in a rights issue, which would be worth 691 million euros ($1 billion) at Thursday's prices.
Immofinanz owns 54.6 percent of Immoeast, one of the biggest developers in emerging Europe.
Austrian brickmaker Wienerberger (WBSV.VI) reopened the market for share sales in Austria with a rights issue last month. Erste Group Bank (ERST.VI) and OMV (OMVV.VI) are both working on rights issues, sources have said. (Reporting by Boris Groendahl; Editing by Dan Lalor) ($1 = 0.6697 euro)
